During Four Years of College, Nolan MacGregor's Student Loans Are

question 20

Multiple Choice

During four years of college, Nolan MacGregor's student loans are $3,600, $3,900, $3,500, and $3,600 for freshman year through senior year, respectively. Each loan amount gathers interest of annual rate 1% compounded quarterly while Nolan is in school; and annual rate of 3%, compounded quarterly during a 6-month grace period after graduation. Assume the freshman year loan earns an annual rate of 1% interest for year during the first year, then for 3 full years until graduation. Make similar assumptions for the loans for the other years. After the grace period, the loan is amortized over the next 10 years at an annual rate of 3%, compounded quarterly. If Nolan decides to pay an additional $90 above the calculated quarterly payment, how many payments of this size will amortize the debt? Round your answer to the nearest whole number. ​

• A)32 quarters
• B)97 quarters
• C)10 quarters
• D)30 quarters
• E)16 quarters

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Definitions:

Trend Line

A line drawn on a graph that shows the general direction in which data is moving over time.

Deseasonalize

The process of removing seasonal effects from a time series to better identify trends.

Seasonal Indexes

Quantitative measures that represent how a seasonal pattern affects the data over a specific period, often used in time series analysis to adjust predictions for seasonal effects.

Time Series

A continuous chain of data points, often resulting from measurements taken one after another within a certain timeframe.